Audit 365718

FY End
2025-04-30
Total Expended
$51.53M
Findings
2
Programs
5
Year: 2025 Accepted: 2025-09-05
Auditor: Blue & CO LLC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
575725 2025-001 Significant Deficiency - L
1152167 2025-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $48.55M Yes 1
93.264 Nurse Faculty Loan Program (nflp) $1.16M Yes 0
93.247 Advanced Nursing Education Workforce Grant Program $880,911 Yes 0
93.178 Nursing Workforce Diversity $539,519 - 0
93.732 Mental and Behavioral Health Education and Training Grants $401,744 - 0

Contacts

Name Title Type
UHKJSPE98GK1 Joey Duruttya, CPA Auditee
8592514578 Rick Shields, CPA Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: FNU has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Frontier Nursing University, Inc (FNU) under programs of the federal government for the year ended April 30, 2025. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of FNU, it is not intended to and does not present the financial position, changes in net assets, or cash flows of FNU.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: FNU has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: FNU has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. FNU has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Federal Direct Student Loans Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: FNU has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. For the year ended April 30, 2025, FNU processed $48,550,036 of new loans under the Federal Direct Student Loans Program (Assistance Listing (AL) No. 84.268) (which includes unsubsidized and Parents' Loans for Graduate Students). FNU is responsible only for the performance of certain administrative duties with respect to the Federal Direct Student Loan Program, and accordingly, it is not practical to determine the balance of loans outstanding to students and former students of FNU under the program at April 30, 2025.
Title: Nurse Facility Loan Program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: FNU has not elected to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. FNU administers the Nursing Faculty Loan Program (NFLP). Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. Current year loan expenditures and disbursements are $194,061. The balance of loans outstanding at April 30, 2025, consists of: Federal Assistance Listing Number Program Name Outstanding Balance as of April 30, 202593.264 Nursing Faculty Loan Program $1,004,717

Finding Details

Information on the Federal Program: Federal Direct Student Loan Program, AL Number 84.268 (Student Financial Aid Cluster) – U.S. Department of Education Criteria: Per 34 CRF 668.22(c)(1)(vi), if a student takes a leave of absence that does not meet the requirements of 34 CRF 668.22(d), the date that the student began the leave of absence is their withdrawal date. Per 34 CFR 685.309(b)(2)(i), unless the school expects to submit its next enrollment report within 60 days, the school must notify the lender or the guaranty agency within 30 days if it discovers that a student who received a loan either did not enroll or ceased to be enrolled on at least a half-time basis. Condition: For all students who went on a Regular Academic Hiatus, 202 students in total, withdrawal status was reported as the day the student officially withdrew, instead of the date the student began the Regular Academic Hiatus. A Regular Academic Hiatus is a leave of absence that does not meet the requirements of 34 CRF 668.22(d). Questioned Cost: $-0- Cause: The University did not have the proper internal controls in place to ensure that the students who took a Regular Academic Hiatus were reported as withdrawn to National Loan Student Database System. Effect: The enrollment status for students who took a Regular Academic Hiatus were incorrect during the time of their hiatus. Recommendation: We recommend the University update their reporting procedures for students who take a Regular Academic Hiatus to ensure that accurate withdrawal dates are properly reported to the National Loan Student Database System. Views of responsible officials and planned corrective actions: The University concurs with this finding and will implement oversight procedures to ensure the enrollment status for students taking a Regular Academic Hiatus are reported timely to the National Loan Student Database System.
Information on the Federal Program: Federal Direct Student Loan Program, AL Number 84.268 (Student Financial Aid Cluster) – U.S. Department of Education Criteria: Per 34 CRF 668.22(c)(1)(vi), if a student takes a leave of absence that does not meet the requirements of 34 CRF 668.22(d), the date that the student began the leave of absence is their withdrawal date. Per 34 CFR 685.309(b)(2)(i), unless the school expects to submit its next enrollment report within 60 days, the school must notify the lender or the guaranty agency within 30 days if it discovers that a student who received a loan either did not enroll or ceased to be enrolled on at least a half-time basis. Condition: For all students who went on a Regular Academic Hiatus, 202 students in total, withdrawal status was reported as the day the student officially withdrew, instead of the date the student began the Regular Academic Hiatus. A Regular Academic Hiatus is a leave of absence that does not meet the requirements of 34 CRF 668.22(d). Questioned Cost: $-0- Cause: The University did not have the proper internal controls in place to ensure that the students who took a Regular Academic Hiatus were reported as withdrawn to National Loan Student Database System. Effect: The enrollment status for students who took a Regular Academic Hiatus were incorrect during the time of their hiatus. Recommendation: We recommend the University update their reporting procedures for students who take a Regular Academic Hiatus to ensure that accurate withdrawal dates are properly reported to the National Loan Student Database System. Views of responsible officials and planned corrective actions: The University concurs with this finding and will implement oversight procedures to ensure the enrollment status for students taking a Regular Academic Hiatus are reported timely to the National Loan Student Database System.